Maersk aiming to double freight rates

Maersk Line announced profits of $204 million in Q1, which is widely viewed as positive given the state of trade between Asia and Europe currently. However, Maersk ceo Nils Smedegaard Andersen was swept by a wave of scepticism when he told Reuters recently that he had "no doubt" the carrier could increase rates from the current US$ 730 to US$ 1481 per TEU on July 1.

Andersen believes Maersk will succeed in doubling its freight rates from next month despite the excess of shipping capacity and the small volumes said to have been booked by the carrier.

Many shipping lines have been keen to increase rates to more sustainable levels this year, but have not experienced much success in their attempts. For example, Hyundai Merchant Marine has already postponed a planned hike by one month because the weak market "cannot sustain that sort of increase".

However, Hapag Lloyd recently warned its customers that it will apply general rate increases of US$ 1000 per TEU and US$ 2000 per FEU as of July 1, while MSC is looking for US$ 750 per TEU and US$ 1500 per FEU on its Asia-North Europe route from the same date.

It is still widely believed that, given the lack of demand, a significant shipping capacity withdrawal might be the only way to engineer a radical surge in freight rates.

Source: Maritime Professional

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